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Streuling Enterprises_Budget




Question;Q1. (15 marks) On March 31, Streuling Enterprises, a;merchandising firm, had an inventory of 38,000 units, and it had accounts;receivable totalling $85,000. Sales, in units, have been budgeted as follows;for the next four months;April;60,000;May;75,000;June;90,000;July;81,000;Streuling's board of directors has established a;policy to commence in April that the inventory at the end of each month should;contain 40% of the units required for the following month's budgeted sales.;The selling price is $2 per unit. One-third of sales;are paid for by customers in the month of the sale, the balance is collected in;the following month.;Required;a) Prepare a merchandise purchases budget showing how;many units should be purchased for each of the months April, May, and June. Remember;there is a difference between units and $of the units - use the right figures;in the right spots;b) Prepare a schedule of expected cash collections for;each of the months April, May, and June. Remember the existing A/R;balance


Paper#38237 | Written in 18-Jul-2015

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